PM4620: Week 5 Risk Response Planning Analysis 5.1 Risk Response There are many terms used for risk response planning in business and government environments. It is important for project management practitioners to understand the definition of all risk response strategies and related terms as given in PMBOK. Employers, who base their project management methodology on PMI often use these terms and their specific meanings. Read the following bike rental scenario: You and your partner run a bike rental service in a famous tourist spot. You rent bicycles to tourists on weekends. You have 30 bikes and rent each bike at $10 per hour, including the helmet. During planning, you and your partner have identified and qualified two major risk events. You know that taking any action can result in a need to update your plan for the weekend. Risk A: Due to an upcoming event, the area will attract more number of tourists. Therefore, you may need more bikes. You can rent bikes from a nearby city for $20 per bike per day, if you book the rental at least two weeks in advance. If you do not book in advance, the renting charge is $30 per bike per day. You are considering the following plans: Collaborate with a bike rental agency in a nearby city to provide extra bikes. Raise your rental rates per bike for the high-demand period. Wait and see what happens. If volume is high by 10:00 a.m. on any day, have your partner go rent some bikes from another bike rental agency and re-rent those out. Risk B: Because of the recent theft activity near your bike storage area, you are concerned about possible theft. You are considering the following plans: Selling your bikes and going out of business, which would have negative long-term effects Purchasing a better insurance policy Buying better locks for the bikes and the storage shed Doing nothing 1 PM4620: Week 5 Risk Response Planning Analysis 5.1 Risk Response Keeping in mind that you are not solving the problems in the bike rental scenario but are merely applying the formal project management terminology to the scenario: Find at least one example of each of the following risk response management terms and explain why it describes the term. o Negative risks or threats o Positive risks or opportunities o Risk acceptance/accept o Secondary Risk o Risk Avoidance/avoid o Risk Transference/transfer o Risk Mitigation/mitigate o Triggers o Residual Risk o Contingency In your own words, explain the meaning of each term. Submission Requirements: Write your answers in at least 2-3 pages. Substantiate your answers by citing at least two references from the ITT Tech Virtual Library, in the APA format. Font: Arial, 12-point, and double-spaced. Evaluation Criteria: Your instructor will use the Writing Rubric to evaluate your responses. Click here to view the Writing Rubric. 2 PM4620 Project PROJECT DESCRIPTION Project Introduction: The project will allow you to apply risk management concepts, tools, and techniques to a complex project, which involves building a playground in the back yard of a home. Through this project, you will identify and plan for risks that might happen in the course of executing the project. Course Objectives Tested: 1. Create a risk management plan that outlines the approach for managing risks in a project. 2. Apply risk identification techniques to document positive and negative risks in a project. 3. Analyze the impact of positive and negative risks on a project. 4. Develop options and actions to enhance opportunities and reduce threats to project objectives. 5. Evaluate the impact of program changes on the risk of a project. 6. Apply the Project Management Body of Knowledge (PMBOK) and Project Management Institute (PMI) standards in managing project risks. PROJECT SUBMISSION PLAN Description/Requirements of Project Evaluation Criteria Assessment Preparation Checklist: Have you created the Risk Before completing the assignment: Management Plan? Read the assigned chapters for this week from your textbooks, Project Have you calculated risk Risk Management Guidelines: Managing Risk in Large Projects and factor for each risk? th Complex Procurements (Custom Update Ed.) and PMBOK Guide, 5 Have you developed a ed. risk strategy for each Read article \"How Project Manager-Project Owner Interaction Can risk? Work Within and Influence Project Risk Management\" on the ITT Tech Have you submitted your Virtual Library using the following path: project on time? ITT Tech Virtual Library> Search> 360 Search Search with \"How Project Manager-Project Owner Interaction Can Work Within and Influence Project Risk Management\" as the keyword. 1 PM4620 Project Description/Requirements of Project 1. Read the topic \"Painting a House\" from this week's online lesson. Title: Risk Management Plan Click here to view the scenario details. Task 1: Create a risk management plan that includes the following: risk identification risk register risk strategies assessment of contingency funds required Task 2: Answer the following questions: What assumptions did you have to make about the project to identify the risks? What assumptions did you have to make to qualify and quantify the risks? What additional information would have made the risk management planning process easier? How would you recommend that your brother track and control risks throughout the project? Submission Requirement: Task 1: Create documents for completing items 1 and 2 from Task 1 using a Microsoft Excel spreadsheet. You may use as many spreadsheets as you want to completely identify and register all risks for the project. For items 3 and 4 of Task 1, create a maximum of 10 page document using Microsoft Word. Task 2: Answer the items listed in Task 2 using APA formatting in a Microsoft Word file with a maximum of 10 pages. Due: Week 5 2 Evaluation Criteria PM4620 Project Description/Requirements of Project Grading Weight: 30% End of Project Description 3 Evaluation Criteria